Caitlin Long, the CEO, and founder of the digital asset custodian Avanti Financial Group concurred with the American entrepreneur and investor Balaji Srinivasan’s stark criticism of the Securities and Exchange Commission’s (SEC) regulations with a “framed” target. Long supported him, adding that his assertions on the SEC could equally be applied to the Federal Reserve.
The Custodia Bank founder’s tweet was demonstrative of her indistinguishable arguments against SEC as well as Fed:
SO TRUE. @balajis you could equally say all this about the Fed, just as you said it about the SEC. 💪 https://t.co/9Yplt05Dj3
— Caitlin Long 🔑⚡️🟠 (@CaitlinLong_) May 17, 2023
In a tweet shared by Balaji Srinivasan, better known as Balaji, he pointed out that “the regulatory state’s power is a function of its reputation”, connecting it to Daniel Carpenter’s Reputation and Power. Though Carpenter’s text traces the history of the US Food and Drug Administration (FDA), unfolding the role of “reputation” in shaping the power of regulatory agencies, Balaji opined that the “concepts also apply to the SEC”.
Tracing the trajectory of the regulators, Balaji spotted that “things have changed” in the year of the “lord Satoshi”. He stated that the 20th-century regulators were “premised on concentration”, adding:
The SEC is built to regulate Goldman and Morgan, not 1000 crypto holders. The FDA is set up for Pfizer and Merck, not 1000 biohackers. And the FAA is meant for Boeing and Airbus, not 1000 drone hobbyists. The sheer number of targets in our decentralized era means this archaic giant is fruitlessly swatting flies.
Balaji further pointed out that the “IQ of the regulatory body has dropped off a cliff relative to their targets”, commenting that a comprehensive space doesn’t need a stringent regulator. As another important point, Balaji posited that the SEC regulators have been confronting “digital democracy”, as a consequence of their exposure on social media.
Finally, Balaji, highlighting the growing migration and relocation of US citizens, asserted that the SEC has no control of a majority of the global market. It is to be noted that the investor has showcased all these points to affirm that the “state is losing”, despite the ongoing “fight” of the regulatory body.
